Compliance Procedures of Representative Office At The End Of 2020 And Early 2021

Representative office compliance procedures at the end of 2019 and early 2020

Compliance Procedures of Representative Office At The End Of 2020 And Early 2021

Representative office compliance procedures at the end of 2019 and early 2020

Representative office compliance procedures at the end of 2020 and early 2021

 

All representative offices are always busy with compliance procedures in the last months of the year. In the first quarter of 2021, there will be a lot of compliance reports and procedures that must be completed. Each type of representative office compliance procedures should be prepared from early December of 2020 to avoid missing deadlines as well as penalties from the competent state agencies.

Read more: 8 Key Compliance Procedures For Foreign Representative Office In Vietnam

Representative Office Compliance Procedures include:

A. Compliance procedures for tax – accounting

1/ Compulsory tasks:

  • Settlement of personal income tax for representative office (the income payer).
  • Settlement of personal income tax for individuals having multiple incomes or direct incomes from abroad.
  • Double-check to issue withhold tax receipts and letter of confirmation of incomes for the resigned employees.

2/ Other important tasks

  • Cashbook and petty cash preparation, collect and organize all related documents and invoices for tax inspection in the following years.
  • Double-check for tax declaration – payment with proper reports and receipts.
  • Double-check for the balance – tax payable amount with the tax agency.

Read more: Internal Audit Plan – Compliance – Tax – Accounting – HR

B. Compliance procedures for annual operation report

  • By January 30th of each year, every representative office shall submit annual operation status reports using the form stipulated by the Ministry of Industry and Trade to the licensing agency by post.
  • Representative offices shall submit reports, documents and explanations for their operation upon the request of competent state regulatory authorities.
  • Fail to submit the reports on time, there will be a penalty amount up to 40 million VND and a black record may impact the office license extension process in the future.

Read more: Compliance Procedures For License Of Foreign Representative Office In Vietnam

C. Compliance procedures for labor management and payroll

1/ Compulsory tasks

  • Amend labor contracts and annex for new salary agreement in 2021 for each employee.
  • Prepare letter of appointment, letter of confirmation of incomes in 2020 for foreign employees.
  • Update new procedures for insurance declaration and payment.
  • Register and amend payroll system, internal labor regulations, labor agreement, etc. to update new regulations and benefits policies that will be implemented in early 2021.

2/ Other important tasks

  • Collect, organize and update employee profile, annual leaves, attendance, overtime and discipline.
  • Prepare letter of confirmation of incomes, personal income tax, withholding receipts, etc. for seasonal employees and employees have direct income from abroad.
  • Review key performance indicators of each employee and issue letter of confirmation about the allowance, bonus, promotion plan, etc. accordingly.

REPRESENTATIVE OFFICE COMPLIANCE PROCEDURES CHECKLIST 2020

 

compliance procedures checklist for representative office in vietnam
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VIVA has been an in-depth consultant on business compliance procedures in Vietnam since 2006, based on our professional - integrated background in Business laws - Accounting and corporate finance - Tax management - Labor relation and payroll – Business administration procedures. VIVA offers exclusive services in an integrated tailor-made, consist of 5 specialized-expertise platforms and the inheritance experience up to hundreds of years for every job.

Our extensive expertise and management system that facilitates us to connect local resources and be ready to deliver exclusive solutions that exceed all standard limits and satisfy all expectations of our clients.

 

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Representative Office Compliance Procedures In Early 2021
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Representative Office Compliance Procedures In Early 2021
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In the first quarter of 2021, there will be a lot of compliance procedures must be completed. Representative office compliance procedures include...
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VIVA Business Consulting
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